Bernstein Liebhard LLP Launches Investigation of Medtronic, Inc. for Suspected ERISA Violations
Bernstein Liebhard LLP announced that it is investigating Medtronic, Inc. (NYSE: MDT) for potential violations of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The investigation focuses on investments in Medtronic stock in the Medtronic, Inc. Savings and Investment Plan and the Medtronic Puerto Rico Employees’ Savings and Investment Plan (collectively, the “Plans”).
Bernstein Liebhard’s investigation involves concerns that Medtronic and other administrators of the Plans may have breached their ERISA-mandated fiduciary duties of loyalty and prudence to participants and beneficiaries of the Plans. A breach may have occurred if the fiduciaries failed to manage the assets of the Plans prudently and loyally by investing the assets in Medtronic stock when it was no longer a prudent investment for participants’ retirement savings.
Specifically, Bernstein Liebhard is investigating whether administrators caused losses to the participants and beneficiaries by causing the Plans to invest in Medtronic stock. It is suspected that Medtronic did not disclose the extent to which revenues from sales of INFUSE Bone Graft (“INFUSE”), a product manufactured by Medtronic, were dependent on the U.S. Food and Drug Administration (“FDA”) rejecting applications; that Medtronic did not disclose reports of medical injuries sustained by patients who used INFUSE, including the death of a patient who recently filed a wrongful death lawsuit in California; and that Medtronic used a calculated and illegal campaign to market the off-label (not FDA approved) use of INFUSE.
Administrators have a duty to review, evaluate, and monitor the suitability of the company’s retirement plan’s investments. If the investigation reveals that administrators failed to comply with these duties by imprudently investing in Medtronic stock, then administrators breached their fiduciary duties, and would be liable under ERISA for the losses caused by their mismanagement of the Plans.
If you are a participant in the Medtronic, Inc. Savings and Investment Plan or the Medtronic Puerto Rico Employees’ Savings and Investment Plan, complete the form to the right or contact Christian Siebott for a free and confidential case evaluation.